Equity Incentive Plan
/ˈɛkwɪti ɪnˈsɛntɪv plæn/
Definitions
- (n.) A corporate plan designed to provide equity-based compensation to employees, typically through stock options or restricted stock units, to align their interests with those of shareholders.
The company's board approved a new equity incentive plan to attract and retain top talent.
Forms
- equity incentive plan
- equity incentive plans
Related terms
See also
Commentary
Equity incentive plans are often governed by securities laws and require careful drafting to ensure compliance with tax rules and shareholder approval.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.